This Indicator Predicts Bitcoin Bottoms

13 Dec 2025 · 1 min

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A YouTube video by Kosta Ouzas discussing an indicator that predicts Bitcoin bottoms. The speaker explains mechanics of short selling and how large liquidation events can trigger short squeezes: when shorts buy back assets to take profit or when liquidations force buybacks, this buying pressure can drive price increases. The video frames this process in relation to an algorithmic strategy that accumulates positions during liquidations and later takes profit as shorts are squeezed.

Chapters

We have to understand as well, is the reason price actually increases after a large liquidation event is shorts take profit. And for anyone that's new to be able to take profit on your short. Just so you know, the process of that is buying back the asset, because when you take a short, you're actually borrowing from the exchange. So that process of buying back the asset then creates buying pressure, which creates what's called a short squeeze. So what's happened is, while the rest of the market got liquidated, we accumulated positions. And now that the market's rallying, the algorithm's in a position where it's actually going to take profit as all the short players get liquidated, which is very, very interesting.